KUALA LUMPUR: OSK Research said the key highlight of its latest technical update on the crude palm oil (CPO) market is the extremely tough RM2,700 to RM2,800 a  tonne resistance zone.

It said on Tuesday, Sept 14 that there has been six major failed breakout attempts at around the RM2,700 to RM2,800 area since April last year.

"Hence, whether or not the price could surpass this tough resistance area would determine whether the current rally can be sustained," it said.

OSK Research said it thought that the latest failed breakout attempts two months could have led to a deeper correction for CPO prices.

Nevertheless, the market managed to reverse the correction phase last month and now it looks like the futures market is going to test the RM2,700 to RM2,800 a tonne area for the seventh time since April last year.

"We maintain our near-term bullish view on the CPO market. A convincing break above the RM2,800 a tonne level would trigger a very important breakout signal. Such a breakout is expected to substantially improve the market's mid-term technical outlook," it said.

OSK Research said from the current level, there is immediate resistance at the RM2,700 to RM2,800 tonne area. To the downside, it is eyeing an immediate support at the RM2,486  a tonne level, followed by the RM2,393  per tonne level.